Trentonian editorial: Potemkin reform

It's being hailed as a “comprehensive” reform of New Jersey's business tax incentives. Translation: It's an overhaul of corporate welfare.The legislation comprising the reform goes by the title “Economic Opportunity Act.” But that's really just the politicians' version of a carnival barker's come-on. “Hurry, hurry, hurry! Step right up! Get your tax breaks here!”

Gov. Christie conditionally vetoed one small giveaway — a provision providing the Service Employees International Union a modest morsel of the action. That provision would have required corporate dole-takers under the legislation to pay the “prevailing” (i.e., union) wage to the SEIU's maintenance and security workers.

A more substantial morsel remains in the reform, which the governor is expected to sign with his conditions acceded to. Poorly disguised language in the measure includes a tax break tailored to entice Subaru to keep its corporate headquarters in Cherry Hill. Subaru — real mom & pop, right?

It may be said this legislation is better than nothing. We wonder, though. The reality remains that “economic opportunity” will flourish only when the private-sector economy flourishes. And the way to make that happen on a meaningful scale is not to parcel out limited business tax breaks to outfits that can negotiate the bureaucratic and legal eligibility hurdles.

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Long-term, it would be better if the (Democrat-run) legislature followed the governor's lead and incremental initiatives and fretted a little more about succoring the needs of the private sector and a little less about succoring the needs of the unionized-to-the-hilt public sector.

The way to approach this is:1. By reining in local property taxes (highest on average in America). This entails breaking the N.J. Education Association's monopolistic stranglehold on public education and introducing competition in the form of school choice. Schools must have not only a “thorough” means of public financing but also an “efficient” means of financing. That first constitutional modifier tends to get all of the attention, the second lip service if even that.

2. By thinning out New Jersey's overgrown weed patch of state regulations with their attendant fees and hidden costs. A business, even a small business, can spend thousands and thousands of dollars on consultants and lawyers just trying to figure out what the verbiage of these rules means.

3. By ceasing and desisting with the pie-in-the-sky solar and wind schemes which, subsidized by ratepayers, help keep New Jersey's electricity rates among the country's highest. These rates combined with property taxes crush wage earners and drain off business dollars — and jobs.

Reform to promote real “economic opportunity” will require, in other words, a more determined and sustained effort than slapping together selective tax-break giveaways and hyping them with carnival-barker come-ons.